San Francisco has a huge population of pampered pooches, which is saying something considering that Americans as a whole love to spend money on their pets. According to the American Pets Product Association's National Pet Owner Survey, Americans spend $43 billion a year on their pets. This amount is triple what it was 20 years ago, making pet care and products one of the fastest growing industries in the US.

And in a city with the fewest percentage of households with children, and the largest percentage of dual income, no-kids residents, pet pampering is, or was, an amazingly lucrative career.

With the economic downturn, businesses in all industries have been hit. Pet care places like The Paw Salon, a fairly no frills, mid-priced pet grooming parlor, are going out of business. The demise of some of the more reasonably priced businesses make it appear as if people are forcing their pets to tighten their belts... and collars.

But according to Michael Schaffer, journalist and author of the new book "One Nation Under Dog", pets actually go counter to the economy. Seems like the more crazy the world gets, the more people invest in their furry loved ones, as evidenced by spikes in profits after September 11 2001 and Hurricane Katrina. The fact that the pet supply industry is actually reporting growth during this economic downturn speaks to this idea.

According to Schaffer, people are more willing to lower their own standard of living before they lower that of their pets.

Sophia Wang, an SF State English major, has taken to buying generic brand groceries for almost everything on her list, except cat food for her Bengal, Erik. For him, she still buys the organic, top shelf food.

"He won't eat anything less, he's too used to it!" Wang said. "You can't explain to your cat, 'oh times are tough, no more expensive food.'"

So why is it that standard pet essential places are losing business, when the industry as a whole is doing fine? Businesses that have found very specific niches and loyal customers have been able to survive.

Joe Ghan works at Best in Show, a pet supply store in the Castro district that specializes in unique and fashionable accessories for cats and dogs. This is the place you get rhinestone collars and special side satchels to carry and display your pet as you walk. They offer unique chew toys ranging from cute to tacky (check out the Osama Bone Laden chew toy). Seems like during a recession, the first thing Fido would have to forgo is his handmade specialty chewtoy, or a new necktie and argyle sweater. Yet Best in Show isn't going anywhere.

"We double as a pet supply place and a gift shop, so we've been okay because of that, I think," Ghan said.

Plenty of other places in the city have garnered reputations for excellent service, which is keeping them in business over cheaper alternatives. The SF Hound Lounge is a pet daycare that offers daytime and overnight services. It costs more a night than many San Francisco hotels, and that's before the extra amenities, like washing or walks. Despite these hard economic times, people aren't willing to put their beloved pet in the hands of someone they don't know, even if it's cheaper.

Allan Warner, a local businessman, said that he hasn't even considered looking for cheaper alternatives for pet care, due to the hassle and worry of inadequate care. It's the care and attention for his dog that is worth paying the extra amount for.

"When you find a place, a really great place, you keep going back to it," Warner said.